LIVONIA — The Livonia-based auto supplier Tower International Inc. (NYSE: TOWR) Thursday reported net income of $16.1 million or 75 cents a share in the second quarter ended June 30, an improvement from a loss of $45.1 million or $2.22 a share a year earlier.
Revenue was $576.6 million, up from $555.9 million a year earlier.
For the six months, net income was $31 million or $1.45 a share, up from a loss of $42.6 million or $2.10 a share a year earlier. Revenue was $1.12 billion, up from $1.09 billion in the first half of 2013.
The company said last year’s second quarter loss reflected charges related to redeeming high-cost debt. Meanwhile, this year’s second quarter was hit by one-time items totaling $3.9 million. Exlcuding those items, “adjusted earnings” were 93 cents a share, vs. $1.03 a hear ago.
Tower said sales were higher in all regions except Brazil.
For full year 2014, Tower is increasing its outlook for revenue by $25 million to $50 million, to between $2.2 billion and $2.225 billion. The company now expects adjusted earnings before interest, taxes, depreciation and amortization of $217 million to $220 million, up $2 million to $5 million from prior guidance, and adjusted earnings per share of $2.95 to $3.05, an increase of 5 to 15 cents.
Tower also announced that its business model has been revised to increase the target for adjusted free cash flow to 4 percent of revenue in 2016, up from the prior target of 3 percent of revenue by 2015, reflecting anticipated further improvement in adjusted earnings, less capital expenditures and a further decrease in interest expense.
“Focusing on free cash flow keeps the Tower team aligned and disciplined,” said president and CEO Mark Malcolm. “Free cash flow is also the ultimate generator of capital, which we can deploy to strengthen the business and benefit customers, shareholders, suppliers, and colleagues. That’s what makes this anticipated step-function improvement a meaningful milestone.”
To listen to a replay of the conference call discussing these results after 3 p.m. Thursday, call (855) 859-2056 in the United States and (404) 537-3406 elsewhere, using conference ID 78689181. The call will also be archived at www.towerinternational.com.